Raser Technologies, Inc. (NYSE: RZ), said Tuesday that its application for a loan guarantee has been approved by the Department of Energy (DOE) to proceed to the next stage of due diligence.
The application is for loan guarantees to help finance up to 80% of a 42-megawatts (MW) geothermal power plant expected to cost about $190 million. The plant is to be builtnear the company’s existing Thermo No. 1 project in Beaver County, Utah.
Raser anticipates that, pending completion of additional due diligence by the DOE, drilling and construction will begin later this year.
Raser CEO Brent M. Cook said, “This announcement from the DOE demonstrates that Raser Technologies is well positioned to take advantage of government stimulus programs targeted for renewable energy. The funds obtained with the loan guarantee program would enable us to develop our current geothermal resources in southern Utah. It would be a great step forward for the company.”
Raser’s Thermo No. 1 geothermal power plant recently began selling power to Anaheim, California under a long-term power purchase agreement. Raser’s power plant design allows the company to utilize relatively low temperature resources and build power plants substantially faster than typical power plants.